Pros & Cons of Currency Types of Profit Center

Hello,
I would like to know pros & cons of using group currency as a currency type of the profit center when PCA is implemented (TCode : 0KE5). We can set either Controlling Area Currency, Profit Center Currency or Group Currency as the Profit Center Currency Type. What precaution we need to take in each of these cases? It would be really great if somebody can explain with the help of example or shares practical experience of taking decision on which type to be used.

Hi
Trans currency is the currency you used in the transaction.. This is always recorded
I dont see any -ve impact of using it in BI in a Live System
br, Ajay M

Similar Messages

SAP DBM: Shop type level profit center

Hi SAP DBM Experts,
At our client there is business process of various shop types within each plant such as small service, large service & Body / paint repair.
There is a requirement to determine the profit center at the level of Shop type level.
As per standard DBM the profit center can be set up at below level:
Plant
Distribution channel
Division
DBM order reason
Material group
Profit center
We are implementing SAP DBM 8.0, please guide whether this can be achieved by any standard configuration.
Regards,
Sachin Balmiki

Hi Sachin,
For DBM the profit center is determined for each internal order created at header level and split level which is passed to accounting document...I am not aware if in DBM 8.0 profit center is determined at item level..if this is the case then it should be from Material master.
what you can suggest is to group the items by internal department for example for bodyshop 2 items, paint - 3item for the same customer and determine the profit center by order type / customer combination.
But structure of DBM CO value flow is such that , i think you need to search for SAP note for profit center at item level ..else you will not be able to use profitability analysis since you end up one profit center at internal order of split billing and actual accounting document with difference profit centers at line item level

Incorrect flow type and profit center missing in FAGLL03 and FBL3N

After finished a transaction CJ88 ,when we use the transaction FAGLL03 for an associated GL account, profit center goes blank in the screen. In CJ20n also the correct profit center associated with the WB element is shown but it's missing in fbl3n and fagll03. Could you please provide help?

Hi JPA,
All the details that you are asking about is attached in the screen-shots provided 'inheritance_document splitting'. I am also providing you screen shots regarding the problem for a better ease of analysis. Here 'cj20n_example' shows the profit center associated during project buildup and the screen shot 'FAGLL03_example' shows the issue due to which the profit center field for the same WBS element is shown blank.
Regards,
Somak Biswas.
inheritance_document splitting:
cj20n_example:
FAGLL03_example:

Classical profit center Accounting in new GL

Dear Experts,
I am not aware about profit center configuration.We are planning to implement ECC-6.
Today i faced problem in dummy client during configuration,
What i did it- i have activated profit center at controlling area
2) then did setting in OKES- created dummy profit center,define profit center standard hierachy,profit center currency = controlling area currency and activated profit center accounting
3)Set Control Parameters for Actual Data- selected online transfer and line items
But i am not sure-I need to do all the setting in ECC-6 like creation of dummy profit center and activation of online transfer +line item tansfer.
Request you to guide me on configuration- Whether setting Of PCA will change in NEW GL or Not required in New GL.
regards
RR

HI ajay,
Thanks for your valuable advice,
When i m planning to do config in golden client.
1)i will not select profit center in controlling area
2)i will not create dummy profit center and not required online transfer and line item tick
3)Shall i need to define standard hierarchy and Profit center currency type for profit center under 0KES ?
need to do anything in 0kes (Maintain Controlling Area Settings for PCA)
request you to clear this also
regards
RR

The Design of Profit Center Code

Dear SAP Gurus,
In the design of profit center code, you can design a profit center code that is common across all company codes by flagging the company code assignment in KE51. Alternatively, you can also design a company code specific profit center code. Unlike profit center accounting, this kind of feature is not available in cost center accounting.
If you would to design your profit center codes in this manner, you can no longer in use of all standard pca reports because there is no company code selection criteria when executing the reports. This is quite inconsistent with the above featute in pca. You can definitely customize your pca reports by bringing in the company code as selection criteria.
Besides it will help you to reduce the number of profit center codes, can anyone share of any other rationales or pros/cons of designing a common profit center code across all company codes? Thanks in advance for your help.
Cheers,
Rebi

Dear SAP Gurus,
Anyone has any inputs for my question?
To elaborate further, here is the example of my question:
a. When designing profit center code PC1, you can create the code as PC1 and flag it as applicable to company code 1000, 2000
and 3000 in KE51
b. Alternatively, you can design company specific profit center code of 1000PC1, 2000PC1 and 3000PC1.
I need your help to share with me the pros and cons of the above 2 options. Thanks in adavance for your help.
Cheers,
Rebi

Profit Center Local Currency (Currency Type 90)

We are in the middle of implementation of SAP and our curreny setting is as the following:
Group Currency: USD
Controlling Area Currency: Currency Type 30 (USD)
FYI we are also implementing multiple valuation as the following (T-Code 8KEM):
Currency Type    Valuation
10                     Legal
30                     Group
10                     Profit Center
Now we set up Profit Center local Currency as Curreny Type 90 (Profit Center invoice currency) in IDR since we want to have different currency then our Group and Controlling Area currency (USD).
However I am just worried that this will cause inconsistency in Profit Center especially between FI and CO.
Anybody has experience whether it is safe to use curreny type 90 as Profit Center local Currency?

Hi Ernst,
Did you ever get a solution for your query. I am facing a similar situation.
In my case the company code currency is USD and controlling area currency is also USD. I am not sure if I should leave the currency field blank in the PCA controlling area settings or populate it with 30 or 90? 90 to me means I am recording PCA currency again as USD when the system anyways records the transactions in both the transaction and local currency. 30 makes sense to me where I can choose the group currency EUR but then the currency setting of PCA is inconsistent with that of the controlling area.
Would appreciate if you can advice on the matter.
Happy New Year
SB

Group Currency in Profit Center Valuation ?

Hello,
We have 3 currencies configured, 1. Local Currency(10), 2.Group Currency(30) 3.Group Currency in Profit Center Valuation(32).
What do you mean by Group Currency in Profit Center Valuation?
Appreciate your help.
Thanks
Srinath

In FI you can manage up to three parallel valuation methods to support transfer prices. The valuation bases are stored using the additional currency and the ledger facilities.
You can use the following valuation methods: 0 - Legal valuation, 1- Group valuation, 2- Profit center valuation.
Also you can have the following currencies: 10 - Company code currency, 30-Group currency, 40-Hard currency, 50-Index-based currency, 60-Global company currency.
The currency and the valuation method are combined in the financial accounting document to form the currency and valuation type. For example, if you want to make a group valuation in the group currency, you enter currency and valuation type 31 in the company code.
IN your case a group valuation in group currency and a profit center valuation in group currency, as well as the legal valuation in company code currency is defined.
The following settings are made in the company code:
The corporate valuation and the profit center valuation are managed in the second and third ledgers, which you have to create yourself. The valuation category used is stored in the ledger master data. You need to enter the relevant currencies in the ledger master record.
You post complete values to each ledger, not delta values. This presentation has the advantage that the parallel valuation methods can be managed in logically and physically separate ledgers. This enables a simple authorization control when accessing the datasets of the parallel valuation methods.
Different valuations can also be stored in the Special Purpose ledgers, just as in the general ledger.
In each ledger master record, you can define whether the ledger manages a legal valuation, a group valuation, or a profit center valuation.

Profit Center not updated for mov type 511

When we are doing the goods receipt through transaction MIGO with mov
type 511 (Receipt of delivery without charge) as 2nd line item along with
mov. Type 101 as first line item, profit center document is not getting
updated for 2nd line item (GLPCA-MSL), but for 1st line item (mov type
101) profit center getting updated.
If we are doing the GR with movement type 511 alone, profit center
(GLPCA-MSL) updated correctly.

hi,
As per your error i might understand.
please check for second line item Item okay is marked or not.
if its 511 then please check whether Pricing control in MA-master whether its a Moving average or Standard price.
as you said for singular 511 profit center gettng updated then you can very well compare to GR's.
Regards,
Ninad Kshirsagar

DBM Order - Assign Profit Center By DBM Order Type

Hi SAP Gurus,
I have new requirement from my user to have different Profit Center by DBM Order Types.
Currently, we only have One profit center for all DBM Order types.
The DBM Order type that we are using is :-
1. Counter Sales (DBM Order Type 1000)
2. Service Order (DBM Order Type 2000)
3. Insurance (DBM Order type 2001)
purpose new profit center
1. Counter Sales (DBM Order Type 1000) - Profit Center MMXX-11000
2. Service Order (DBM Order Type 2000) - Profit Center MMXX-11001
3. Insurance (DBM Order type 2001) - Profit Center MMXX-11002
the requirement is, when user choose Order type 1000 Counter sales, the System will use profit center MMXX-11000,
if the user select Insurance Order Type 2001, system will use profit center MMXX-110002.
is there any Substitution involve in this configuration ?
is there any others configuration need to be configure ?

Hi Fairulnizam,
You need to add the field order type & define the sequence number in the table of the configuration & then use table maintenance generator to generate the maintenance view
Once generated you will be able to maintain Profit center at the order type level along with the other standard criteria.
Other option to generate another table in the sequence to make it generalized at order type level if the first table criteria is not met.
Regards,
Sachin Balmiki

Allocation of Business Partner to a profit center.

Hi,
I had earlier posted a question on how to allocate a BP to a Profit center:
Hi,
Is it possible to allocate a BP to one or more Profit centers when creating a BP Master in SAP;such that, on creation of a marketing document the Profit center is directly picked up instead of selecting it.
Please comment.
Regards,
The answer which solved it is :
Projects can be associated with a Business Partner in the Master data definition but not Profit Center.
Profit Center have associated distribution rules and are linked to G/L account or a transaction at the row level.
You could do this. Create a UDF in the BP Master to enter the profit Center information.
In the Sales Order Rows..in the Profit Center field create a Formatted Search to pull the Profit Center from the BP Master UDF
Example: Let us say your Profit Center User field on the BP Master is called U_PC
then your Formatted Search on the Marketing document would be
SELECT T0.U_PC FROM dbo.OCRD T0 WHERE T0.CardCode = $http://$4.0.0
Set it to Auto Refresh on Item Code ....check Display Saved Values
If you want 2 Profit Centers on the BP Master and the user would select it in the Marketing document then let us presume your UDF's are U_PC1 and U_PC2,
the FMS would be
SELECT T0.U_PC1 FROM dbo.OCRD T0 WHERE T0.CardCode = $http://$4.0.0
UNION ALL
SELECT T0.U_PC2 FROM dbo.OCRD T0 WHERE T0.CardCode = $http://$4.0.0
Suda
Now, since the BP has already been allocated to the profit center anytime a service type credit note is passed which links to a Liability or an "Other" Account type, the profit center still gets allocated.
Can I make any changes to the query such that only Sales or Expenditure account could be allocated to the BP, and any other account if tagged the entry is not tagged with a profit center.
This has become kindof critical for users who check the profit center report, which does not give hte correct figure because of the above issue.
Please advise.

Projects can be associated with a Business Partner in the Master data definition but not Profit Center.
Profit Center have associated distribution rules and are linked to G/L account or a transaction at the row level.
You could do this. Create a UDF in the BP Master to enter the profit Center information.
In the Sales Order Rows..in the Profit Center field create a Formatted Search to pull the Profit Center from the BP Master UDF
Example: Let us say your Profit Center User field on the BP Master is called U_PC
then your Formatted Search on the Marketing document would be
 SELECT T0.U_PC FROM [dbo\].[OCRD\] T0 WHERE T0.CardCode = $\[$4.0.0]

Set it to Auto Refresh on Item Code ....check Display Saved Values
If you want 2 Profit Centers on the BP Master and the user would select it in the Marketing document then let us presume your UDF's are U_PC1 and U_PC2,
the FMS would be
 
SELECT T0.U_PC1 FROM [dbo\].[OCRD\] T0 WHERE T0.CardCode = $\[$4.0.0]
UNION ALL
SELECT T0.U_PC2 FROM [dbo\].[OCRD\] T0 WHERE T0.CardCode = $\[$4.0.0]

Suda

Reading the description of Sales document type and Profit centre from table

Hi
I want to print the description of Sales document type and Profit center on output
I have checked in table TVAK and CEPC but i am unable to pick description against the code
Can anyone please suggest from where can i capture the description of sales document type and profit centre
Thanks and Regards
Sunil Srinivasan

Hi
If you have the sales document number VBELN then pass this VBELN in to table VBAK and you can get the sales document type VBAK-AUART.
Now pass the same VBELN to VBAP table here you can get the Profit Center VBAP-PRCTR
For sales Document type description you pass the VBAK-AUART values into table TVAKT table and get the values for TVAKT-BEZEI is you sales document type description
For Profit center description goto table CEPCT and enter the profit center you will get the
KTEXT
LTEXT
MCTXT
regards
Prashanth
Edited by: Prashanth@SD on Oct 25, 2010 12:29 PM

Substitute at line item level for F-32 (or FB1D) to change profit center

Hi I’m Liz,
I started to write a substitution for F-32 transaction code for clearing with write off reason codes. I trying to substitute if Profit center = 14xxx then substitute profit center 141xx for only P&L GL accounts. If I simulate the substitution step and enter in GL account, Doc Type and profit center it selects the correct profit center. When I try to post an entry with the trace turn on it shows the profit center field blank so no substitution is determined. The reason for the substitution is my company is going through a reorg where certain profit center will be locked to post. The issue is some Account Receivable posting hold the profit centers that are planning to be locked. I have created a validation rule which will allow only certain User ID to post with the locked profit center (to allow clearing open items posting) to balance sheet accounts. My company has document splitting turned on.
Any help would be greatly appreciated.
Thanks

Hi Liz,
I´ve got the similar problem like you wrote.
My client had a reorg project behind and locked the old profit centers. For the reason of clearing open items and FX valuation those locked profit centers need either to be re-locked or the posting need to be posted to the new profit centers by using substition. Could you please kindly advicehow did you solved this problem?
OR maybe someone else can help?
Many thanks in advance.

Allocation of Sales and Expenditure Accounts only to a profit center.

Hi,
I had earlier posted a question on how to allocate a BP to a Profit center:
Hi,
Is it possible to allocate a BP to one or more Profit centers when creating a BP Master in SAP;such that, on creation of a marketing document the Profit center is directly picked up instead of selecting it.
Please comment.
Regards,
The answer which solved it is :
Projects can be associated with a Business Partner in the Master data definition but not Profit Center.
Profit Center have associated distribution rules and are linked to G/L account or a transaction at the row level.
You could do this. Create a UDF in the BP Master to enter the profit Center information.
In the Sales Order Rows..in the Profit Center field create a Formatted Search to pull the Profit Center from the BP Master UDF
Example: Let us say your Profit Center User field on the BP Master is called U_PC
then your Formatted Search on the Marketing document would be
SELECT T0.U_PC FROM dbo.OCRD T0 WHERE T0.CardCode = $http://$4.0.0
Set it to Auto Refresh on Item Code ....check Display Saved Values
If you want 2 Profit Centers on the BP Master and the user would select it in the Marketing document then let us presume your UDF's are U_PC1 and U_PC2,
the FMS would be
SELECT T0.U_PC1 FROM dbo.OCRD T0 WHERE T0.CardCode = $http://$4.0.0
UNION ALL
SELECT T0.U_PC2 FROM dbo.OCRD T0 WHERE T0.CardCode = $http://$4.0.0
Suda
Now, since the BP has already been allocated to the profit center anytime a service type credit note is passed which links to a Liability or an "Other" Account type, the profit center still gets allocated.
Can I make any changes to the query such that only Sales or Expenditure account could be allocated to the BP, and any other account if tagged the entry is not tagged with a profit center.
This has become critical for users who check the profit center report, which does not give the correct figure because of the above issue.
Please advise.

Hi Julie,
Thanks for your reply!
We have recently upgraded to 2005B PL43.
Still it has not helped.
Secondly these report are regularly checked by our Sales manager's hence updating using DTW will be a cumbersome affair.
Is there some query which can update the fields correctly......
E.g. Can the following query be amended to get the correct result:
DECLARE @Type nvarchar(1)
SELECT @Type=T1.ActType FROM OACT T1 WHERE T1.AcctCode=$[$39.94.0]
IF @Type='I'
BEGIN
           SELECT T0.U_AT_PC FROM [dbo].[OCRD] T0 WHERE T0.CardCode= $[$4.0.0]
END
ELSE
IF @Type='E'
BEGIN
           SELECT T0.U_AT_PC FROM [dbo].[OCRD] T0 WHERE T0.CardCode= $[$4.0.0]
END
ELSE
BEGIN
        SELECT u2018u2019
END
Need your advise.
Regards

Allocation of Sales and Expenditure Accounts to Profit Center.

Hi,
I had earlier posted a question on how to allocate a BP to a Profit center:
Hi,
Is it possible to allocate a BP to one or more Profit centers when creating a BP Master in SAP;such that, on creation of a marketing document the Profit center is directly picked up instead of selecting it.
Please comment.
Regards,
The answer which solved it is :
Projects can be associated with a Business Partner in the Master data definition but not Profit Center.
Profit Center have associated distribution rules and are linked to G/L account or a transaction at the row level.
You could do this. Create a UDF in the BP Master to enter the profit Center information.
In the Sales Order Rows..in the Profit Center field create a Formatted Search to pull the Profit Center from the BP Master UDF
Example: Let us say your Profit Center User field on the BP Master is called U_PC
then your Formatted Search on the Marketing document would be
SELECT T0.U_PC FROM [dbo].[OCRD] T0 WHERE T0.CardCode = $[$4.0.0]
Set it to Auto Refresh on Item Code ....check Display Saved Values
If you want 2 Profit Centers on the BP Master and the user would select it in the Marketing document then let us presume your UDF's are U_PC1 and U_PC2,
the FMS would be
SELECT T0.U_PC1 FROM [dbo].[OCRD] T0 WHERE T0.CardCode = $[$4.0.0]
UNION ALL
SELECT T0.U_PC2 FROM [dbo].[OCRD] T0 WHERE T0.CardCode = $[$4.0.0]
Suda
Now, since the BP has already been allocated to the profit center anytime a service type credit note is passed which links to a Liability or an "Other" Account type, the profit center still gets allocated.
Can I make any changes to the query such that only Sales or Expenditure account could be allocated to the BP, and any other account if tagged the entry is not tagged with a profit center.
Please advise.
Edited by: Vishal Attal on Oct 14, 2008 12:53 PM
Edited by: Vishal Attal on Oct 14, 2008 12:54 PM

Hi Vishal
Best will be to use the ActType field from OACT to check whether it is an "I" (Income) or "E" (Expenditure) and not an "N" (other) type.
Change query as follows:
SELECT CASE WHEN (SELECT T1.ActType FROM dbo.OACT T1 WHERE T1.AcctCode = $[$39.94.0]) <> 'N' THEN (SELECT T0.U_PC FROM dbo.OCRD T0 WHERE T0.CardCode = $[$4.0.0]) ELSE '' END
Let me know if it works
Kind regards
Peter Juby

Profit Center 990612 does not exist in Company Code XYZ

Dear Friends,
During the time of posting through t.code F-02 than system is showing the below error :-
Message no Z1008
The Profit Center entered does not exist in this company code.
Enter the correct profiot center which belongs to this company code.
To search for profit center by comapny code, use matchcode type
'Z' - Profit Center by company code and name.
Please advice.
Thanks & Regards,
Pankaj

Hi Pankaj
This message is a Z message, which means your own creation
Go to OB28 and check where have you written the Validation step to check this
Also, check if the PC exists in that comp code or not
br, Ajay M

Pros & Cons of Currency Types of Profit Center

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